Question
The local city of Cambridge is proposing to make modifications to their existing water treatment facility. The modifications will allow for increased efficiencies that are
The local city of Cambridge is proposing to make modifications to their existing water treatment facility. The modifications will allow for increased efficiencies that are expected to result in savings for the local community that uses the water treatment facility. The expected savings are $1.35 per day per household. The proposed modifications will increase noise levels in the area of the water treatment facility. It is expected that 11 local businesses will be negatively impacted by the increased noise levels at an expected cost to these businesses of $18,450 per year for each business. The proposed modifications will require maintenance of $260,000 per year. The life of the modifications is 49 years The cost of the modifications to the water treatment facility is $11,525,000.The discount rate for the city of Cambridge is 5%. What is the minimum number of households that must benefit from the modifications for the proposal to worthwhile?
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